Lack of Government Support Concerns the Dairy Sector
Source: dairynews.today
With the opening of the milk market to U.S. products, small producers in Costa Rica call for state aid to compete with the North American giant.
The Costa Rican dairy sector faces significant challenges with the recent opening of its market to U.S. products. Small producers are expressing concerns over the lack of government support, which is compounded by the superior institutional backing that U.S. competitors receive.
Ivvania Quesada, president of the Costa Rican National Chamber of Milk Producers (CNPL), emphasized the need for state subsidies to level the playing field. She noted that infrastructure inefficiencies and bureaucratic hurdles remain key obstacles for local producers. Additionally, the removal of tariffs on U.S. dairy products, as part of the 2007 Free Trade Agreement, has intensified competition.
Despite producing 3.3 million liters of milk daily and generating employment for 500,000 people, the local industry struggles with high production costs compared to international counterparts.
Ivvania Quesada, president of the Costa Rican National Chamber of Milk Producers (CNPL), emphasized the need for state subsidies to level the playing field. She noted that infrastructure inefficiencies and bureaucratic hurdles remain key obstacles for local producers. Additionally, the removal of tariffs on U.S. dairy products, as part of the 2007 Free Trade Agreement, has intensified competition.
Despite producing 3.3 million liters of milk daily and generating employment for 500,000 people, the local industry struggles with high production costs compared to international counterparts.
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